Hong Kong’s security chief John Lee reportedly sent letters to media tycoon Jimmy Lai and two banks, threatening them with jail time should they partake in related dealings.
Hong Kong Secretary for Security John Lee sent letters to Jimmy Lai alongside HSBC and Citibank, according to a «Reuters» report citing the documents, stating that action has been taken under the national security law to seize or freeze property «used or intended to be used» to commission an offense.
Described as «Notice No. 1», Lee also threatened imprisonment in the letter of up to seven years for any dealings with Lai’s accounts in the city.
«Nailing» Wealth Management in Hong Kong
«We are certain they are determined to choke Apple, and even without trying to seize assets offshore, they are making it difficult to move that money back into Hong Kong,» the report said citing one adviser who spoke about government efforts to crack down on Lai’s newspaper.
The adviser also warned that the recent moves against Lai should be a «big wake-up call» for the wealth management industry.
«We can now see that any banking relationship you have centered on Hong Kong makes you vulnerable under the national security law – that is going to be a big wake-up call for the wealth management industry here, and their rich clients,» the adviser said. «In trying to nail Jimmy Lai and Apple to the wall, they might well be nailing that industry too.»
Asset Freeze
Advisers also claim that Lai’s headline local business accounts, which were recently frozen alongside his majority stake in Next Digital, had relatively small funds compared to his overall wealth spanning across global banking relationships.
Nonetheless, they are seeking guidance from bankers and lawyers on how to challenge the freeze as well as the impact on offshore holdings and banking relationships managed through Hong Kong.
